Market Roundup
•UK Public Jun Sector Net Cash Requirement 12.610B ,12.024B previous
•UK Public Jun Sector Net Borrowing 22.12B ,13.20B forecast, 13.23B previous
•French Jul Business Survey 106 , 106 forecast,108 previous
•Greek May Current Account (YoY) -2.004B,-1.616B previous
Looking Ahead - Economic Data (GMT)
•12:00 EU Jul Deposit Facility Rate -0.25% forecast,-0.50% previous
•12:00 ECB Jul Interest Rate Decision 0.25% previous
•12:00 ECB Marginal Lending Facility 0.25% previous
•12:30 US Jul Philly Fed Prices Paid 64.50 previous
•12:30 US Jul Philly Fed Employment 28.1 previous
•12:30 US Jul Philly Fed Business Conditions -6.8 previous
•12:30 US Jul Philly Fed New Orders -12.4 previous
•12:30 US Jul Philadelphia Fed Manufacturing Index -2.5 forecast,-3.3 previous
•12:30 Canada Jun New Housing Price Index (MoM) 0.3% forecast, 0.5% previous
•12:30 US Initial Jobless Claims 240K forecast, 244K previous
•12:30 US Continuing Jobless Claims 1,340K forecast, 1,331K previous
•12:30 US Jobless Claims 4-Week Avg 235.75K previous
•14:00 US Jun Leading Index (MoM) -0.5% forecast,-0.4% previous
•14:30 US Natural Gas Storage 47B forecast,- 58B previous
•15:30 US 4-Week Bill Auction 1.980% previous
•15:30 US 8-Week Bill Auction 2.270% previous
Looking Ahead - Economic events and other releases (GMT)
•12:45 EU ECB Press Conference
•14:15 EU ECB President Lagarde Speaks
•12:15 ECB Monetary Policy Statement
Fxbeat
EUR/USD: The euro steadied on Thursday as the European Central Bank geared up for its first rate rise in over a decade and as political tumult in Italy offset relief following the restart of Russian gas flows through the region's largest pipeline. Traders will have more than just the landmark rate move to juggle later, with the ECB also set to sketch out its anti-fragmentation plan a bond market intervention scheme it hopes will prevent another euro zone debt crisis. Markets are looking to see how much the ECB will raise interest rates later at 1215 GMT on Thursday, with a 25 basis point (bps) hike already priced in. Immediate resistance can be seen at 1.0244(50%fib), an upside break can trigger rise towards 1.0270(21DMA).On the downside, immediate support is seen at 1.0161(38.2%fib), a break below could take the pair towards 1.0048 (23.6%fib).
GBP/USD: The British pound slid against the dollar on Thursday amid worsening risk appetite ahead of the European Central Bank rate decision and amid political turmoil in Italy.The resumption of gas flows from the Nord Stream 1 pipeline had provided some relief but the tone soured after Italian Prime Minister Mario Draghi handed in his resignation for the second time in a week. Sterling dropped 0.4% against the dollar to $1.19275 but remained above the 28-month low hit last week. Immediate resistance can be seen at 1.2045(38.2%fib), an upside break can trigger rise towards 1.2078(38.2%fib).On the downside, immediate support is seen at 1.1912(9DMA), a break below could take the pair towards 1.1789(23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as the prospect of aggressive policy tightening by major central banks boosted dollar. Markets are looking to see how much the ECB will raise interest rates later at 1215 GMT on Thursday, with a 25 basis point (bps) hike already priced in.Traders also await details of an ECB tool to contain stress in bond markets The U.S. Federal Reserve, too, is widely expected to raise rates by 75 basis points at its policy meeting next week. Immediate resistance can be seen at 0.9753(38.2%fib), an upside break can trigger rise towards 0.9789(19th July high).On the downside, immediate support is seen at 0.9682(21DMA), a break below could take the pair towards 0.9636(50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday after Bank of Japan left its super-loose monetary policy unchanged. BOJ Governor Haruhiko Kuroda brushed aside the chance of near-term policy tightening, saying he had absolutely no plan to raise interest rates or hike an implicit 0.25% cap set for the bank's 10-year bond yield target. As widely expected, the BOJ maintained its -0.1% target for short-term rates and that of 10-year bond yields around 0%.The BOJ's dovish language stands out in a recent flurry of central bank interest rate hikes to combat soaring inflation. Strong resistance can be seen at 139.29 (23.6%fib), an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen at 137.70 (38.2%fib), a break below could take the pair towards 137.30 (14DMA).
Equities Recap
Italy's benchmark FTSE MIB stock index slumped nearly 2% on Thursday as the country's government crumbled, keeping broader European stocks under pressure despite relief over the timely resumption of Russian gas flows.
At (GMT 11:17 ),UK's benchmark FTSE 100 was last trading down at 0.42% percent, Germany's Dax was down by 0.44% percent, France’s CAC was up by 0.31%percent, Italy's FTSE MIB was down by 1.31% percent
Commodities Recap
Gold prices touched a more than one-year low on Thursday, as the prospect of aggressive policy tightening by major central banks weighed on the non-interest-bearing metal’s appeal, while investors awaited European Central Bank’s policy announcement.
Spot gold fell 0.8% to $1,682.67 per ounce by 0920 GMT, after hitting its lowest level since March 2021.U.S. gold futures fell 1.1% to $1,681.00.
Oil prices fell by more than $5 on Thursday after higher U.S. gasoline stockpiles stoked demand worries and returning energy supply from Libya and Russia eased supply concerns.
Brent crude futures lost $5.13, or 4.8%, to $101.79 a barrel by 1039 GMT after slipping 0.4% in the previous session. U.S. West Texas Intermediate crude futures were down $5.05, or 5.06%, at $94.83 after a 1.9% drop on Wednesday.
